The Central Bank said on Wednesday that the developer intends to limit the spread of lending schemes in Russia under preferential mortgage programs. This, Messages published on the regulator website.
“The primary mechanism is to increase the level of provisioning for such loans. Provisions of up to 50% will be made for loans with a total value significantly lower than the market value.
INSIDE report In this regard, the Central Bank says loan rates for these programs are “extremely low”.
“Extremely low rates are achieved by overestimating the cost of an apartment for a buyer-borrower and paying the developer this difference as a commission to the bank to compensate for the lack of income. And also – through the use of a government-subsidized rate,” – comes out of the regulator’s report.
In addition, from May 1, 2023, the Central Bank of Russia augmented macroprudential premiums for high-risk mortgage loans, particularly in the mortgage segment under joint construction participation agreements.
The regulator announced that it is additionally considering the possibility of imposing increased surcharges on such loans within a year after the home is operational.
“With the further spread of ‘non-standard’ schemes that cause housing prices to rise and put borrowers at risk, the Central Bank is ready to initiate legislative changes to eliminate unfair practices,” the Central Bank said. said in a statement.
21 February RIA Novosti agency reported that mortgage prices have risen in Russia as part of joint lending programs for developers and banks. If in December 2022 the rates on such loans were actually zero – 0.01% and 0.1%, then at the end of last year they increased to 3% per annum.